How it runs for e-commerce brands and Amazon sellers
A cash forecast models settlement timing, supplier deposits and ad spend. Reports are built from reconciled ledgers in QuickBooks Online or Xero and delivered on a fixed calendar with a plain-English note, in a format lenders and investors can follow.
What is outsourced financial reporting?
Outsourced financial reporting means a remote accounting team prepares your periodic financial statements and management reports instead of an in-house controller. The team works from your own accounting file, applies a consistent close and review process, and issues a report pack on a fixed date each month. You keep the data, the software and the decisions.
What we handle for e-commerce brands and Amazon sellers
- Contribution margin by channel after fees, advertising, fulfillment and COGS
- SKU gross margin, return rate and unsellable rate monthly
- Inventory turns and weeks of cover by SKU and location
- Cash forecast modeling settlement cycles, supplier deposits and ad spend
- Lender and investor package from reconciled accounts
The KPI that matters here
Channel contribution margin and cash forecast delivered within 2 business days of each close.
E-commerce compliance notes
Marketplace facilitator laws
Every US state with a sales tax now requires marketplaces such as Amazon, Walmart, eBay and Etsy to collect and remit sales tax on third-party sales. The marketplace's collections appear in your settlement reports and must be recorded as tax collected and remitted by the facilitator, not as your liability. Some states still require registered sellers to file returns that report marketplace sales as exempt.
Sales-tax nexus on direct sales
Direct sales through Shopify, your own site or wholesale count toward each state's economic nexus threshold, commonly $100,000 in sales or 200 transactions in the current or prior year, and inventory stored in FBA warehouses can create physical nexus. We track sales by state monthly, flag thresholds approaching and prepare the workings for TaxJar, Avalara or your filing provider. Registration and filing decisions rest with you and your tax adviser.
VAT, GST and cross-border selling
Selling into the UK requires VAT registration once taxable turnover passes £90,000, or from the first sale for many overseas sellers, and EU distance sales can be reported through the One Stop Shop. Canadian GST/HST and Australian GST apply to imported low-value goods and to registered sellers. We prepare VAT and GST workings for your accountant or registered agent to file; we do not submit returns.
Inventory valuation and 1099-K reporting
Inventory must be valued consistently, including freight, duties and prep, so COGS and taxable income are right. Payment processors and marketplaces issue Form 1099-K for gross payments, which is reconciled to recorded sales so the figures your CPA reports agree with what the IRS receives. Tax preparation is support only; your firm reviews and signs.
E-commerce software we work in
More for e-commerce brands and Amazon sellers
Other services for e-commerce
Financial reporting in other industries
Frequently asked questions
What is contribution margin by channel and why does it matter?
It is gross sales for a channel minus refunds, marketplace and processing fees, fulfillment, advertising for that channel and COGS. It shows what the channel adds toward fixed costs. A channel can grow revenue while contributing nothing once fees and ads are counted, and this report is how you see it before the cash proves it.
Can you report profitability by SKU?
Yes, when landed cost per SKU is maintained and units sold by SKU come from the channel reports, the accountant reports gross margin, return rate, advertising allocation where it is trackable and inventory cover per SKU. Allocation methods for shared costs are agreed with you and stated on the report. Low-margin and high-return SKUs are listed each month.
How do you forecast cash for an inventory business?
The forecast starts with expected settlements by channel from recent sales, then lays in supplier deposits and balances from open purchase orders, freight and duty, advertising commitments, payroll and loan repayments week by week. The accountant updates it monthly and flags the weeks where a supplier payment and a slow settlement collide.
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